Once negotiations are complete and due diligence is satisfied, you are ready to sign. Understanding the signing process and what happens next helps ensure a smooth transition into your new premises.
The signing process
Commercial leases involve several documents:
The binding contract that commits you to leasing the premises. Usually signed first, before the formal Deed of Lease. Contains the commercial terms and conditions precedent.
The formal lease document executed after conditions are satisfied. Sets out all the terms of your tenancy. Usually needs to be witnessed.
If required, this is usually a separate document signed by directors guaranteeing the tenant company's obligations.
For longer leases (3+ years), you may register a caveat against the property title to protect your interest. This requires a separate authority.
Before signing
- Read the final lease document carefully
- Verify all negotiated changes are included
- Prepare the bond or bank guarantee
- Arrange insurance as required by the lease or check landlord has done so
Taking possession
On the commencement date:
- Conduct a thorough inspection and document the condition (photos, video)
- Note any existing damage or issues
- Collect keys and access cards
- Arrange for utilities to be transferred to your name
- Update your address with suppliers, customers, and government agencies
Ongoing tenant obligations
Throughout the lease:
- Pay rent on time (usually monthly in advance)
- Maintain insurance and provide certificates to landlord
- Keep the premises in good repair
- Comply with health and safety requirements
- Seek consent before making alterations
- Notify landlord of any damage or issues
Never miss a renewal deadline
Renewal options must be exercised within strict timeframes, usually 3-6 months before lease expiry. Miss the deadline and you lose the right, regardless of how long you've been a good tenant.
- - Calendar the deadline immediately after signing
- - Set multiple reminders
- - Consider your options well before the deadline
- - Give written notice in the required form
When issues arise
During your tenancy, issues may arise with the landlord, the building, or your own circumstances. Common situations include:
- Landlord not maintaining the building properly
- Wanting to exit the lease early
- Disputes over rent reviews
- Assignment or subletting requests
We are here to help with any tenancy issues that arise. Contact us on 06 835 7394.
What Carlile Dowling does at this stage
- - Attend to execution of all lease documents
- - Register caveat if required
- - Provide you with a summary of key dates and obligations
- - Assist with rent reviews and renewal negotiations
- - Help resolve any disputes that arise during the tenancy